Saudi private sector’s power-generation investments above SAR59bn
The value of Saudi Arabia’s private sector’s investment in electric power generation has surpassed SAR59.5 billion, according to a senior official.
Private sector companies account for 70 per cent of the 70 power generation facilities in the kingdom, says Abdullah al-Shehri, governor of the Electricity Regulatory and Cogeneration Authority.
In remarks published in Al-Watan paper, Al-Shehri reveals that the total cost of the nation’s 70 electric power generation plants has surpassed SAR350bn.
He also indicates that local demand on electricity has been rising on an annual ratio of eight per cent over the past six years.
Since the beginning of the current year, electricity consumption, at peak time, went beyond 57,000 megawatts, while the kingdom’s output capacity stands at 65,000 megawatts, according to Al-Shehri.
Despite the high cost of electricity production and the subsidies the state pays to this sector, prices are still the lowest in the world and wastage still runs high, the governor points out.
He expects that the kingdom’s electric load will double in the 15 years to come, which requires massive investments to increase generation capacity.
(SAR1 = AED0.98, at the time of publishing)